Rupee vs Dollar / Rupee put an end to the 'bullying' of the dollar! Indian currency at a 2-month high

Recently, the Indian rupee has shown tremendous strength against the dollar. On Thursday, the rupee closed at 86.36, showing a gain for the fifth consecutive day. The fall in the dollar index and foreign investment supported it, while global uncertainties may affect further momentum.

Rupee vs Dollar: The dollar may be dominating the world, but in India the rupee has challenged this dominance. The special thing is that while the dollar index has fallen by about 6 percent in the last two months, the Indian rupee has seen a significant strength against the dollar. Due to this strength, the rupee has reached a two-month high.

Continuous strength of the rupee

On Thursday, the Indian rupee closed 1 paisa stronger at 86.36 (provisional) against the dollar. This was the fifth consecutive day when the rupee registered strength. In these five days, the rupee has gained about 1 percent against the dollar. Foreign exchange traders believe that the Indian rupee has strengthened its position against external pressures, supported by strong foreign inflows and positive trends in domestic markets.

Key currency market data

The rupee opened at 86.39 in the interbank foreign currency market and finally closed at 86.36 after touching a high of 86.20 and a low of 86.41 during trading. Earlier, on Wednesday, the rupee closed 19 paise stronger at 86.37 against the US dollar.

Dollar index and global market conditions

The dollar index, which measures the strength of the US dollar against six major currencies, was trading 0.46 per cent higher at 103.90. According to the statement of Federal Reserve Chairman Jerome Powell, the US central bank will be ready to keep interest rates high if inflation persists.

Stock market gains

The Indian equity market also witnessed strength. The 30-share BSE Sensex closed 899.01 points, or 1.19 per cent, higher at 76,348.06, while the Nifty closed 283.05 points, or 1.24 per cent, higher at 23,190.65. Meanwhile, foreign institutional investors (FIIs) sold equities worth Rs 1,096.50 crore on a net basis on Wednesday.

Further prospects

Experts believe that this strength of the Indian rupee may continue, but it may also see volatility due to selling by foreign institutional investors and global uncertainties.

Conclusion

Despite the global dominance of the dollar, the Indian rupee has strengthened its position in recent times. If this trend continues, the strength of the rupee will benefit the Indian economy and the trade deficit can also be controlled by reducing dependence on imports.